﻿<!DOCTYPE html>
<html lang="en">
<head>
    <meta charset="UTF-8">
    <title>Stocks and Shares</title>
    <link href="../css/manual.css" rel="stylesheet" type="text/css">
    <script src="../js/toc.js"></script>
    <script src='../js/jquery.min.js'></script>
    <script src="../js/back_to_top.js"></script>
</head>
<body onload="generateTOC(document.getElementById('toc'));">
    <header>
        <nav><small><a id="go_home" href="../index.html?lang=ru_RU">Go to main help page</a></small></nav>

        <a href="#" id="back-to-top"><img src="../img/backtotop.png" alt="Back to Top" /></a>
        <!--Smooth Back to Top Button End-->

        <h1>Stocks and Shares</h1>
    </header>

    <!-- ToC generated by Javascript -->
    <nav id="toc"></nav>

    <h2>Stocks, Shares and Share Dividend Management</h2>
    <p>
        The terms Stocks and Shares generally mean the same thing but
        depending on how we use these terms, could mean something different.
        Here we refer to <dfn>Stocks</dfn> as companies, and <dfn>Shares</dfn>
        as units of value within the company. Generally we would obtain
        Stocks via a Stock Broker and purchase or sell shares in the company.
    </p>
    <p>
        Initializing Stocks and Shares is initially a two stage process.
    </p>
    <ol>
        <li>First we create the Stock Entry and the associated Share Account.</li>
        <li>We add the initial Shares information to our Share Account.</li>
    </ol>
    <p>
        Any subsequent transactions involving Share movements is accessed via the
        company in the Stock Portfolio view.
    </p>
    <p>
        Any transaction associated with our normal accounts is done via the Account View using the associated Shares
        Account.
    </p>

    <h3>Creating a Stock Portfolio for our Stocks</h3>
    <p>
        In order to use Stocks and Shares in MMEX, we need to create an
        account of type: <b>Investment</b>.
    </p>
    <p>
        The name for this account would generally be the name of the Stock
        Broker. In our example we have selected the stock broker being called
        <q>Yahoo Finance</q>.
    </p>
    <p>
        This account would appear in the navigation tree under the heading
        <b>Stock Portfolios</b>. When we expand the Stock Portfolios branch
        in the navigation tree, we would see our newly created Stock Portfolio
        account.
    </p>
    <p>
        Selecting our new account <q>Yahoo Finance</q> opens the view: Stock
        Portfolio: Yahoo Finance. In this view we can now add the stocks that
        we own.
    </p>

    <h3>Adding Stocks to our Stock Portfolio</h3>
    <p>
        We refer to Stocks as the companies that we have purchased shares.
    </p>
    <p>
        Let us say that we purchase shares in two companies from out stock
        broker <q>Yahoo Finance</q>, we would create new entries in the stock
        portfolio view for our companies.
    </p>
    <p>
        As an initial entry for each company we would supply the following:
    </p>
    <aside class="sticky notes">
        The fields Date, Share Number, Share Price and Commission are
        duplicated for each share transaction that we enter.
    </aside>
    <aside class="sticky notes">
        The Date in the Stock Portfolio view becomes obsolete, and it is
        recommended that this field is hidden.
    </aside>
    <dl>
        <dt>Company Name</dt>
        <dd>This will also allow us to create a Share Account for this company of the same
            name.</dd>
        <dd>Example: Alpha Corporation</dd>
        <dt>Stock Symbol</dt>
        <dd><q>APC</q> being the Stock Exchange code, <q>AX</q> being the Stock
            Exchange to obtain current share value information</dd>
        <dd>Example: APC.AX</dd>
        <dt>Share Number</dt>
        <dd>The initial number of shares</dd>
        <dt>Share Price</dt>
        <dd>This is the cost per share</dd>
        <dt>Commission</dt>
        <dd>This is generally the remaining value for incomplete shares</dd>
        <dd>Example: Purchase of $1000.00 worth of shares at $2.35 per share,
            gives us 425 shares and $1.25 as commission.</dd>
    </dl>

    <img class="shadow" alt='New Stock Investment example'
         src='../en_GB/stock_shares_new_stock.png'>

    <aside class="sticky notes">
        Save before close to keep any changes!
    </aside>
    <p>
        Saving this entry, the Share Account and Share Linkage can be set up.
    </p>
    <p>
        Subsequent use of this dialog allows us to update the share price for
        this stock. When aditional shares have been purchased, this price will
        affect all shares.
    </p>

    <h3>Adding Initial Shares to our Stock</h3>
    <p>
        Now that we have created the initial Stock entry, we need to Add a
        Transaction to our Stock to create the initial Shares entry. The
        initial share information is transferred to our new share transaction.
    </p>
    <p>
        Here we would add extra information similar to a normal transaction.
    </p>
    <dl>
        <dt>Account</dt>
        <dd>This would be the associated Share Account created when the Stock
            was initially created. If this was not done, any other account can
            be used for this transaction.</dd>
        <dd>In order to keep track of transactions, it is recommended that a
            Share Account is created.</dd>
        <dt>Type</dt>
        <dd>Withdrawal from the share account represents a deposit to the actual shares</dd>
        <dd>Deposit from the share account represents a withdrawal to the actual shares</dd>
        <dt>Transfer</dt>
        <dd>All Share transactions are in effect transfers to and from actual
            share investments depending on the transaction being a purchase or
            sale of shares.</dd>
        <dd>If the transaction is required to be accounted as an expense or as
            income, we would then remove the transfer selection.</dd>
    </dl>
    <img class="shadow" alt='Addition of Shares to our transaction'
         src='../en_GB/stock_shares_new_shares.png'>

    <h3>Adding Subsequent Share Entries to our Stock</h3>
    <p>
        Purchase or sale of shares is achieved by accessing the stock entry
        in the Stock Portfolio view and adding new transaction.
    </p>
    <p>
        Here we need to add the share information and control the purchase or
        sale via the transaction section of the share entry:
    </p>
    <dl>
        <dt>Share Purchase</dt>
        <dd>Transaction type is Withdrawal</dd>
        <dt>Share Sale</dt>
        <dd>Transaction type is Deposit</dd>
    </dl>

    <h2>Stock Portfolio Account</h2>
    <p>
        Our Stock Portfolio Account now displays a summary of the Stocks we have.
    </p>
    <ul>
        <li>The stock broker name is used to define the Stock Investment name.</li>
        <li>The companies we buy shares from become the share name</li>
        <li>Shares are generally associated with a Share Account having the
            same name as the company name.</li>
        <li>The Shares Accounts heading can be seen by using the menu
            <kbd><samp>View</samp> &rarr; <samp>Display Share Accounts</samp>
            </kbd></li>
    </ul>
    <h4>Example</h4>
    <p>
        Companies Alpha Corp and Beta Corp maintain their accounts with Yahoo
        Finance. Here we have hidden various headings as these become
        meaningless in this view.
    </p>
    <img class="shadow" alt='Stock Portfolio view containing our new Stocks'
        src='../en_GB/stock_shares_portfolio.png'>
    <p>
        Note: Initial share price is not listed in this view.
        This is because the share price becomes meaningless in a summary
        view as each purchase will generally have a different share price.
    </p>

    <h2>Stock Transaction List View</h2>

    <p>
        When we have added shares to our account we can see the associated
        share transactions using the View Transactions
    </p>
    <img class="shadow" alt='Stock list from Portfolio view for our stock'
         src='../en_GB/stock_shares_view_transactions.png'>

    <h2>Share Accounts</h2>

    <p>
        A <dfn>Share account</dfn> contain the transactions that are
        associated with this company stock.
    </p>
    <p>
        Initially we would set aside money for investment in Stocks and
        Shares. This is achieved by transferring money from our general
        accounts to a Share account.
    </p>
    <p>
        As shares are purchased and dividends received, we can now keep track
        of our investment over time.
    </p>
    <p>
        In a transactions, we can also use the company name as a Payee. It is
        also advisable to create categories of:
    </p>
    <ul>
        <li>Share: Purchase</li>
        <li>Share: Dividend</li>
        <li>Share: Sale</li>
    </ul>

    <p>Stock list from Portfolio view for our stock:</p>
    <img class="shadow" alt='Account View for the Share Account: Alpha Corp'
         src='../en_GB/stock_shares_share_account.png'>

    <h2>Adding Dividends to our Shares</h2>
    <p>
        Accessing our share account, we can add ordinary transactions to our
        shares account.
    </p>
    <ul>
        <li>A share dividend transaction becomes a normal transaction.</li>
        <li>The same rules for Income and Expense apply to share accounts
            when a transaction is created in the Account View.</li>
        <li>Actual commissions paid to a stock broker should also
            be recorded as a separate transaction.</li>
    </ul>

    <footer><p><small>
        Copyright &copy; 2005-2009 Madhan Kanagavel<br>
        Copyright &copy; 2013-2019 MMEX contributors<br>
        <span id="translator">Translators: MMEX contributors</span>
    </small></p></footer>
    <script>
        var LANG = document.getElementsByTagName('html')[0].getAttribute('lang');
        var tr = document.getElementById("translator");
        if (LANG == 'en')
            tr.parentNode.removeChild(tr);
    </script>

</body>
</html>
